Yingli urges public not to worry after it reports 2014 losses

By Chen Qingqing Source:Global Times Published: 2015-5-19 23:53:01

Market should not overreact to Yingli Green Energy Holding Co's recently released 2014 earnings report, Wang Yiyu, CFO of Yingli, told the Global Times on Tuesday.

Yingli, China's leading solar panel producer, recorded a year-on-year decline of 3.7 percent in its net income in 2014 and its total debt in 2014 increased 26 percent from 2013, its financial result released on Friday showed.

The company's net loss in 2014 was 1.4 billion yuan ($225.8 million), down from 2.1 billion yuan in 2013.

Yingli's share price opened at $0.80 on Tuesday (US time), which marked a year-to-date decline of 62 percent and the lowest point since the company began being traded on NASDAQ on June 2007.

Events such as economic slowdowns in some countries and regions hurt the solar energy industry and affected Yingli's profitability, according to the company's earnings report.

In addition, a significant reduction of government subsidies and preferential policies may also have had an impact on its operations, stated the report.

"Those risks may not happen again in the future," Wang was quoted as saying in an e-mail sent to the Global Times on Tuesday.

There are some doubts about Yingli's operational ability, and its substantial indebtedness and  losses may affect Yingli's operations, however, the risks should not be exaggerated, Wang said.

Yingli's net loss has decreased since 2012, showing that it has a positive outlook, Meng Xian'gan, deputy director of the China Renewable Energy Society, told the Global Times on Tuesday.

"The solar industry is a policy-driven sector. For example the anti-dumping investigations launched in Europe in previous years had negative effects on many Chinese solar firms," Meng noted.

China now accounts for about 70 percent of global panel production, and Yingli as an industry leader still has an opportunity for further growth, Meng said.



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